using greater economies of scale they reduced the number of logistic
suppliers from 26 to four, improving structure and communication. Smaller distribution centres were
replaced by larger hub centres that were strategically located closer to retailers, providing better control
over inventory and fewer stock shortages. Due to the contrast in revenue between small and large
retailers, changes were introduced to create value and optimize sales: discounts were offered to smaller
stores in exchange for placing orders early, and LEGO would no longer ship cartons that were not full. In
order to maximize business opportunities with large chain stores and big box retailers, LEGO worked
closely to provide joint forecasting, inventory management and marketing support.